Nabors Industries Ltd (NBR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.19 | 7.24 | 6.39 | 5.73 | 6.56 | |
| DSO | days | 44.55 | 50.41 | 57.12 | 63.71 | 55.61 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.19
= 44.55
Nabors Industries Ltd's Days Sales Outstanding (DSO) has shown a fluctuating trend over the past five years. The DSO decreased from 54.33 days in 2019 to 42.24 days in 2023, indicating an improvement in the company's ability to collect receivables. This suggests a positive development in managing accounts receivable efficiency since the company is collecting payments from customers at a faster rate.
The decreasing trend in DSO over the years reflects the company's effective credit management and collection efforts. A lower DSO indicates that the company is converting its accounts receivable into cash more efficiently, which is a positive sign for liquidity and cash flow management.
Overall, the downward trend in DSO for Nabors Industries Ltd highlights improved working capital management and the company's ability to collect payments from customers in a timely manner, enhancing its financial health and operational efficiency.
Peer comparison
Dec 31, 2023